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RAU - Republic Gold

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RAU seems to be running Nicely... UP 12% (EDIT: make that 18%)

Where the sellers are holding stongly, while the buyers are chasing. atm...

Cheers
SevenFX
 
dubiousinfo said:
The opies have now lost all the previous premium to the heads and are currently trading at parity..
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Sorry DubiousInfo.

New to options (oppies) so can you explain what you mean, and why it would loose premium if they're gone up (heads..???)

Thanks
SevenFX
 
RAU looks happy today...hit 5.8c...if it closes above the resistance of 5.3c today it will be game on IMO....too many positives out here...market is realising the potential of RAU now
 
arrrhhhhhhhhhhhhhhh darn darn darn. :banghead::banghead::banghead:

I just went back into this yesterday and day traded it. Frig when am I going to learn.
 
Have to say I'm happy with this one! Thanks for all the FA that people have posted on RAU - I for one am an FA man in preference to TA. I would have to agree that a company with the potential resources that RAU has seems to be a bargain at $20m market cap. Have been buying in from .037 up till yesterday at .047 :D
 
At a 2.5 exercise price, the total option value = 3.3 cents + 2.5 cents = 5.8cents. As the head price is also at approximately that level, the options are trading at parity.
 
Caliente said:
At a 2.5 exercise price, the total option value = 3.3 cents + 2.5 cents = 5.8cents. As the head price is also at approximately that level, the options are trading at parity.
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Thanks Caliente.

Made perfect sense the way you explained it.

So can you just REsell the option b4 expiry and not exercise the option (hence not taking ownership of the underlying stock)... just profiting in the option buy/sell price

EDIT: Also are these oppies only released on float, as I couldn;t find them on asx page.

Thanks Again
 
SevenFX said:
So can you just REsell the option b4 expiry and not exercise the option (hence not taking ownership of the underlying stock)... just profiting in the option buy/sell price

EDIT: Also are these oppies only released on float, as I couldn;t find them on asx page.

Thanks Again
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Hi SevenFX

The code is RAUO and you trade them just like a share. You can get their exercise price and expiry date from the financial report, website or share registry.

I'd say you made a good buy and just in time. Good Luck.

Options can be issued by the company at any time.
 
Whiskers said:
Hi SevenFX

The code is RAUO and you trade them just like a share. You can get their exercise price and expiry date from the financial report, website or share registry.

I'd say you made a good buy and just in time. Good Luck.

Options can be issued by the company at any time.
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Meaw Whiskers..

I wish I had oppies in these, as I've always bought and unfortunately sold the physical stock, hence didn't hold any on surge today.

Though interested to hold oppies instead, with longer expiry dates on these speckies...???

So can you REsell the oppies instead of exercising them...

Thanks
SevenFX
 
SevenFX said:
Sorry DubiousInfo.

New to options (oppies) so can you explain what you mean, and why it would loose premium if they're gone up (heads..???)

Thanks
SevenFX
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Sorry Tek was in meetings all afternoon, but Caliente did a good job of explaining it. I will just add a little more.

The options we are discussing for RAU are company issued options, these are different to exchange traded options (ETO’s).

The options for RAU have the code RAUO and can be bought and sold the same as shares, you don’t need a special account. They can be traded up to 1 week prior to the exercise date, from that time the only alternative is to exercise them, or let them expire worthless.

The options for each company have their own specific exercise price and expiry date. RAUO exercise price is 2.5c and the expiry date is 30 Nov 08. Which means for each option held, the holder can pay 2.5c to the company and convert the option into 1 fully paid ordinary share. This can be done any time up to the expiry date. There is no obligation to exercise the option, however, any options that are not exercised by the exercise date are cancelled and become worthless.

The price of options RAUO (3.3c) consist of 2 parts, intrinsic value and extrinsic value, or premium as some refer to it.

The intrinsic value for RAUO is the SP of the shares (RAU ) less the exercise price. At closing today, this was 5.6c – 2.5c = 3.1c

The extrinsic value for RAUO is the price of the option (3.3c) less the intrinsic value 3.3c – 3.1c = 0.2c premium

When they are at parity, there is no extrinsic value, only intrinsic value. Generally these types of options will have a fair degree of extrinsic value or premium.

Take LML for example, SP of 33c and option LMLO with an exercise price of 30c and expiry on 30 June 2010. LMLO traded today at 14c, so the intrinsic value for LMLO is the SP of the shares (LML ) less the exercise price. At closing today, this was 33c – 30c = 3c The extrinsic value is the price of the option less the intrinsic value 14c – 3c = 11c. So LMLO has a high extrinsic value, or premium.

Extrinsic value is made up of a number of things including time value.

As the time to expiry gets closer, the extrinsic value will drop until the option and heads are trading at parity. Its not quite that simple, but you get the picture.

The options for RAU still have a year to expiry, so with such a small premium, I would consider them cheap when compared to the heads. Back in August/September the premium was around 1.5c to 2c.

Hope this helps.
 
G'day All,
I got on RAU a few months ago and am very pleased with the way things are going. We are really starting to see the SP move now and not on any particular news release, i think more due to the market discovering the potential of RAU. i'm strongly considering increasing my stake as i think there is a lot of upside.
However, I'd like to ask ASF members who have been following RAU a few questions:
(1) Where do you think the SP could be by end of this year and why? Could we see 10c?
(2) Where do you see the SP by end of 2008?
(3) What is the most likely outcome of the LZN dispute and will it have an effect on RAU's developments and therefore SP? (in my opinion i think the dispute has already been factored in and if there is anything that comes out of it, it can really only be positive upside for RAU....but thats just MHO) :D
 
Having a rather nice run again today. Up 25% :banghead::banghead: I still own some shares that are no free but wish I hadn't sold all the others.
 
Very interesting to watch this trade today - a good example of the law of supply and demand. As there is only around 1.5m shares being offered for sale and people want to buy them, the price people are willing to pay just keeps rising - currently 8c (up 40% :eek:) Nice to be on a winner :D
 
Risky Trader said:
Can anyone speculate what is the secret ingredients behind the SP jump? Striking more gold?

Thanks
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There are some fundamentals with this stock, so I do not want to take away from that, but there seems to be a lot of momentum trading going on at the minute. There's been $$ sitting on the sides waiting for direction and the direction is UP. Ups finish in downs. Be a boy scout. ;)
 
Well, that was an interesting day. :eek: I inadvertantly missed todays trading, but I had a sell order for my opies hanging in the market and adjusting them upwards in case the market had a rush of blood one day. I moved the sell up to 6c late last week and blow me down, I see the market just took them out today.

I'm not sure whether to be :D or :mad: that I didn't catch the market today and lift my sell price. I guess I'm hoping it was an aberation and they overcorrect a bit so I can get onboard again. :cautious: :p:

I see the company got a speeding notice and replied that they had nothing to report, so what is happening. Huge volume.

Has anyone analyised the buyers?

Is there a suiter on the prowl?
 
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